Archived by alpha (04/12/2023)
- 50.00 -15.15% by 01/12/2023
Ericsson is a global supplier of telecommunication equipment. Its market position and technology moat has not resulted in positive returns for long-term investors, despite global 4G and 5G roll-out. The share price declined 50% in the past decade (apart from temporary highs), and is only 1/10 compared to its all-time high during the dot-com bubble in the late 1990s.
The company has been involved in multiple bribery crises across the globe (incl. with ISIS). The business now has headwinds from the tougher economic climate that also impacts 5G spend. In 2023 the company announced to cut 8.500 headcount (8%) globally. And looking at recent earnings the company has mostly missed analysts expectations. Further downsizing continues in 2024.
In my opinion Ericsson does not qualify as quality investment.
Vonage has been fined in the US for preventing customers to end the subscription. It is a disqualifying signal that management is mainly working for their own interests, and not taking good care of customers.01
Vonage VD salary
During the purchase of Vonage Ericsson agreed $100M package for 2022 with Roy Reed. This resulted in $40M for 2022 which is 7x Ericsson's VD salary for 2022.01